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Competition in Health Service Organization


A Health Service Organization like any other organization has strategic goals and objectives to achieve, majorly, gaining a competitive advantage in the industry. Competition is healthy even in Healthcare Service providers whether competing for qualified and competent physicians, third-party financiers, or patients. However, most importantly, theses organizations exist with the sole goal of providing quality health care to patients. Therefore, the key role of competition ought to introduce mechanisms to reduce overall health care costs and increase the value for patients.

According to Rivers and Glover (2008), competition involves several elements, notably, price, convenience, quality, and superior products and services. Moreover, new technology and innovation are equally important as the world advances technologically. Both the internal and external environments of the Health Service Organizations act as catalysts towards increased competition in the industry. External components, for example, the government regulations, varying social and demographic attributes, advancing technology, and political dynamics influence the organizations’ strategic mission, vision, and goals. Similarly, the internal environment influences the health care quality and system costs.

Impacts of competition

Competition is good for the healthcare industry. The literature review shows that it brings positive impacts (Cowing et al, 2009). Competition leads to provision of quality products and services to patients. Through new technology and innovation, hospitals improve processes of caring for patients. For example, improving radiotherapy machines technologically raises their efficiency in treating more cancer patients. Secondly, competition leads to a reduction in health care costs as more hospitals invest in efficient machinery with low maintenance costs. Consequently, patients receive services at a lower cost. Finally, high competition in the industry contributes to patient satisfaction (Cowing et al, 2009).


To conclude, competition in the Health care industry is good as it compels health care providers to improve the quality of their service delivery with the patient in mind. This is through new technology and innovation, which lowers system costs. Consequently, patients acquire superior products and services conveniently and at low prices, which results in patient satisfaction.




Cowing, M., Davino-Ramaya, C. M., Ramaya, K., & Szmerekovsky, J. (2009). Health care delivery performance: service, outcomes, and resource stewardship. The Permanente Journal13(4), 72.

Rivers, P. A., & Glover, S. H. (2008). Health care competition, strategic mission, and patient satisfaction: research model and propositions. Journal of health organization and management22(6), 627-641.